Sun Communities (SUI) AI Stock Analysis

• Market Cap: $15.61B
• Dividend Yield: 6.21%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.29
• Revenue Growth: -14.17%
• EPS Growth: 1097.53%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Residential
• EPS (TTM): 10.02
• Shares Outstanding: 125,155,464
• 10 Day Avg. Volume: 795,479
• 30 Day Avg. Volume: 1,079,565
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 6.96
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 23.26
• 1Y Price Target: $138.46
• Price Target Upside: 9.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: $143.00 ▲(13.01% Upside)

Sun Communities receives a strong overall score driven by its robust earnings call performance and favorable valuation metrics. While financial performance shows profitability, challenges in revenue growth and cash flow generation are noted. Technical analysis supports a stable outlook.

Positive Factors

Balance Sheet

The sale of the Marina business will significantly reduce leverage and strengthen the company's emphasis on high-value segments.

Financial Performance

SUI's focus back to its bread-and-butter MH/RV business resulted in a positive 2Q25, with a Core FFOps beat and guidance raise above consensus.

Management

SUI announced the highly-anticipated appointment of a new CEO, Charles Young, President of INVH — a solid and potentially outstanding choice, given his leadership experience at a leading S&P 500 residential REIT.

Negative Factors

External Growth

SUI reduced its 1031 designation to $565M from $1B, reducing near-term external growth.

G&A Expenses

Despite implementing a cost-cutting plan, the company's G&A expenses as a percentage of revenues remain higher than those of its peer group.

RV Market Performance

The transient RV business at Sun Communities, Inc. remains under pressure due to normalization after increased travel post-COVID and general macroeconomic uncertainty.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. (SUI) is a real estate investment trust (REIT) that specializes in the ownership, operation, and development of manufactured housing communities and recreational vehicle (RV) resorts across the United States and Canada. The company focuses on providing high-quality housing options and lifestyle amenities, catering primarily to families and retirees seeking affordable living solutions in desirable locations. Sun Communities operates a diverse portfolio of properties, offering a range of services including leasing and community management.

How the Company Makes Money

Sun Communities generates revenue primarily through the leasing of residential lots in its manufactured housing communities and RV resorts. The company charges monthly rent to residents who own their manufactured homes, as well as to RV owners who utilize the resort facilities. Additionally, SUI earns income from property management services, amenity fees, and sales of homes and RVs within its communities. Key revenue streams include long-term lease agreements with home residents, transient RV rentals, and sales of new and used manufactured homes. The company also benefits from economies of scale as it continues to expand its portfolio, often acquiring existing communities to enhance its revenue base. Strategic partnerships with home manufacturers and providers of community services further bolster its income potential.

Sun Communities Financial Statement Overview

Summary

Sun Communities presents a healthy financial position with strong revenue growth and profitability margins. However, a high debt-to-equity ratio poses financial risk, and the net profit margin is low, indicating challenges in converting revenue into net income.

Income Statement

Sun Communities shows steady revenue growth with a TTM revenue of $2.99 billion, although there has been a slight decline from the previous year. The gross profit margin remains strong at 47.7% in the TTM period. However, the net profit margin is relatively low at 2.56%, indicating challenges in converting revenue into net income. Both EBIT and EBITDA margins show solid profitability at 17.26% and 35.2%, respectively, providing a stable operational performance.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 1.06, suggesting significant leverage, which could pose financial risk. Return on equity is modest at 1.11%, indicating limited profit generation from shareholders' equity. However, the equity ratio stands at 41.93%, showing a reasonable proportion of equity financing compared to total assets, which adds some stability.

Cash Flow

Operating cash flow is robust at $862.4 million, contributing positively to a strong free cash flow. The operating cash flow to net income ratio stands at 11.24, highlighting a strong cash-generating ability relative to net income. The free cash flow to net income ratio is also robust, demonstrating effective cash management, although there has been minimal growth in free cash flow compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.76B	3.20B	3.18B	2.93B	2.26B	1.39B
Gross Profit	1.70B	1.50B	1.48B	1.42B	1.15B	774.22M
EBITDA	827.00M	1.21B	771.60M	1.11B	1.02B	666.70M
Net Income	1.30B	89.00M	-213.30M	242.00M	380.20M	131.61M
Balance Sheet
Total Assets	13.36B	16.55B	16.94B	17.08B	13.49B	11.21B
Cash, Cash Equivalents and Short-Term Investments	15.63B	47.40M	29.20M	217.70M	265.10M	77.34M
Total Debt	4.28B	7.35B	7.95B	7.39B	5.60B	4.69B
Total Liabilities	5.57B	9.36B	9.77B	9.20B	6.76B	5.58B
Stockholders Equity	7.41B	7.08B	7.08B	7.81B	6.62B	5.53B
Cash Flow
Free Cash Flow	807.10M	861.00M	790.50M	734.90M	753.60M	543.29M
Operating Cash Flow	807.10M	861.00M	790.50M	734.90M	753.60M	543.29M
Investing Cash Flow	5.37B	-267.40M	-919.50M	-3.06B	-2.34B	-2.49B
Financing Cash Flow	-4.81B	-571.60M	80.30M	2.35B	1.57B	2.00B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 126.54 is above the 20-day moving average (MA) of 126.08, above the 50-day MA of 125.37, and above the 200-day MA of 121.62, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	75 Outperform	$15.61B	12.19	-1.51%	6.21%	-14.17%	1097.53%
UDR	70 Outperform	$12.84B	101.59	3.74%	4.41%	2.29%	-4.89%
ELS	69 Neutral	$11.99B	31.99	23.16%	3.31%	-0.03%	1.00%
CPT	68 Neutral	$15.46B	76.20	3.30%	3.76%	0.76%	-60.70%
ESS	66 Neutral	$17.65B	21.29	14.40%	3.75%	7.56%	54.15%
UMH	63 Neutral	$1.32B	116.44	3.64%	5.59%	8.39%	―
Sector *	63 Neutral	$7.00B	13.45	-0.52%	6.98%	3.61%	-22.78%

Sun Communities Corporate Events

Sun Communities Appoints New CEO Charles D. Young

On July 23, 2025, Sun Communities, Inc. announced the appointment of Charles D. Young as Chief Executive Officer, effective October 1, 2025, succeeding Gary A. Shiffman, who will transition to Non-Executive Chairman of the Board. Mr. Young brings over 25 years of experience in real estate operations and investment management, having previously served as President of Invitation Homes Inc. Under Mr. Shiffman’s leadership, Sun Communities grew significantly, achieving a market capitalization of over $16.5 billion and expanding its portfolio to over 500 communities. The transition marks a new chapter for the company, with expectations of continued growth and value delivery for shareholders and stakeholders.

Sun Communities Highlights Strategic Focus on MH and RV

On June 2, 2025, Sun Communities, Inc. released an investor presentation highlighting its strategic focus on MH and RV communities, following the sale of its Safe Harbor Marina properties. This move aims to simplify the company’s business strategy, improve its financial profile, and increase its exposure to annual income streams. The company anticipates that this transaction will enhance margins, improve overhead efficiency, and strengthen its balance sheet, positioning it as a ‘pure play’ MH and RV operator.